Q3 2023 International Seaways Inc Earnings Call
Okay.
Yeah.
Yeah.
Speaker 1: Hello everyone and welcome to the International Seaways 3rd Calls up 2023 Result Conference Call. All lines have been placed on mute during a presentation portion of the call with an opportunity for question announced at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. I would now like to turn the conference over to our host, James Small, General Counsel and Chief Administrative Officer. Please go ahead.
Hello, everyone and welcome to the International Seaways Fun Cool top 2023 results conference call. All lines have been placed on mute during the presentation portion of the Coke with an opportunity for a question and answer then.
If you would like to ask a question. Please press star followed by one on your telephone keypad I would now like to turn the call I bought twice James small general Counsel and Chief administrative officer. Please go ahead.
Speaker 2: Thank you, Candace. Good morning, everyone, and welcome to International COOs Earnings Call for the third quarter of 2023.
Thank you Kevin.
Morning, everyone and welcome to International Seaways earnings call the third quarter of 2023.
Speaker 2: Before we start, I'd like to begin by advising everyone with us on the call. Stay FOLLOW!
Before we start I'd like to begin by advising everyone with us on the call today.
Speaker 2: During this call, management may make forward-looking statements regarding the company or the industry in which it operates. Those statements may address, without limitation, the following topics. Outlets with crude and product tanker markets.
During this call management may make forward looking statements regarding the company or the industry in which it operates those statements may address without limitation the following topics.
Outlooks for the crude and product tanker markets.
Changes in trading patterns.
Speaker 2: forecasts of world and regional economic activity and the demands for and production of oil other petroleum products.
Forecasts of World and regional economic activity and as the demand for and production of oil other petroleum products.
Speaker 2: The effects of ongoing conflicts around the globe, the company's strategy, our business prospects, expectations regarding revenues and expenses, including vessel, charter hire, and G&A expenses.
That's a ongoing confidence around the globe.
The company's strategy or business prospects expectations regarding revenues and expenses, including vessel charter hire and G&A expenses.
Speaker 2: estimated bookings, TCE rates and or capital expenditures during the fourth quarter of 2023 2024 or in any other period. Projected schedule.
Tomato bookings TCE rates and or capital expenditures during the fourth quarter of 2023 during 2024 or in any other period.
Projected scheduled dry dock and off hire days.
Speaker 2: purchases and sales of vessels, construction of new build vessels and other investments.
Purchases and sales of vessels construction of Newbuild vessels and other investments.
The company's consideration of strategic alternatives.
Speaker 2: and since they didn't reach the pilot insurance actions and any clients, the issue dividends, the company's relationships with its stakeholders, the company's
Anticipated and recent financing transactions and any plans to issue dividends.
The company's relationships with its stakeholders.
The ability to achieve its financing and other objectives and.
Speaker 2: and other economic, political and regulatory developments. Well,
Other economic political and regulatory developments.
Speaker 2: Any such forward looking statements taken to account various assumptions made by management based on a number of factors, including management experience, perception of historical friends, current conditions, expected and future developments. Another factor to the management believes are appropriate to consider in the search.
Any such forward looking statements take into account various assumptions made by management based on a number of factors, including management's experience perception of historical trends current conditions.
Future developments.
And the other factors that management believes are appropriate considering the circumstances.
Speaker 2: For looking things are subject to risk uncertainty and assumptions, many of which are beyond the company's control, which could cause actual results differently from those implied or expressed by the day.
Forward looking statements are subject to risks uncertainties and assumptions many of which are beyond the company's control, which could cause actual results to differ materially from those implied or expressed by the statements.
Speaker 2: Backer risks and uncertainties that could cause international COAs actual results to differ include those described in our annual report on Form 10K for 2022.
Factors risks and uncertainties that could cause international <unk> actual results to differ include those described in our annual report on Form 10-K for 2022.
Speaker 2: Our quarterly reports on Form 10-Q for the first three quarters of 2020-2023.
Our quarterly reports on Form 10-Q for the first three quarters of 'twenty three.
Speaker 2: and in other violence that we have made or the future may make with the US securities exchange.
And in other filings that we have made for the future may make with the U S Securities and exchange switch.
Speaker 2: Now, let me turn the call over to our friends and chief executive officer, Mr. Lois Abrahan. Lois.
Now, let me turn the call over to our President and Chief Executive Officer, Ms. Lois as Brian Lewis.
Lois.
Yeah.
Speaker 3: Thank you very much, James. Good morning, everyone. Thank you for joining International C-Ways earnings call for the third quarter of 2023.
Thank you very much James.
Good morning, everyone. Thank you for joining international Seaways earnings call for the third quarter of 2023.
Okay.
Speaker 3: Following slide four of the presentation, which you can find on the Investor Relations section of our web.
Following slide four of the presentation, which you can find on the Investor Relations section of our website.
Speaker 3: International T-Ways net income because the third quarter was almost 100 million dollars.
International Seaways net income for the third quarter.
Almost $100 million.
Speaker 3: rckly two hours per diabetic shape.
Roughly $2 per diluted share.
Speaker 3: Bringing our cumulative earnings over the last 12 months to over 600.
Bringing our cumulative earnings over the last 12 months too.
Over $640 million.
Speaker 3: Adjusted EBITDA with $161 million for the quarter.
Adjusted EBITDA.
With $151 million for the quarter.
Speaker 3: And over $800 million in the last 12 months.
And over $800 million in the last 12 months.
Speaker 3: based on our strong results in the third quarter. And the spot pictures well above a great even level, that's far in the fourth quarter.
Based on our strong results in the third quarter.
Ann.
The spot fixtures, well above our breakeven level, thus far in the fourth quarter.
Speaker 3: We declare a combined dividend of a dollar and 25 cents per share. Following this dividend payment in December .
We declare a combined dividend of the dollar and 25 cents per share.
Following this dividend payment in December.
Actual.
Last 12 month returns to shareholders.
Speaker 3: will include a cumulative $6.29 per year in combined dividends as well as $14 million in buy-back.
Include a cumulative $6 and 29% and combined dividend as well as $14 million in buyback.
Speaker 3: equating to over $320 million, a 16 plus percent yield on our average market cap during this period.
Equating to over $320 million.
16 plus percent yield.
On our average market count during this period.
Speaker 3: We continue to enhance our balance sheet with our balanced capital.
We continue to enhance our balance sheet.
With our balanced capital allocation approach.
Speaker 3: Total liquidity at the end of the quarter was over 580 million dollars.
Total liquidity at the ended the quarter with over $580 million.
Speaker 3: comprised of $215 million in cash and an un-strong revolver compacted of over $365 million.
Comprised of $215 million in cash.
And an undrawn revolver capacity of over $365 million.
Speaker 4: We added $160 million of revolver capacity.
We added $160 million of revolver capacity.
Speaker 4: After executing this new credit facility during the quarter.
After executing this new credit facility during the quarter.
Speaker 4: This facility features a 20 year amortization proposal.
This facility features.
20 year amortization profile.
Speaker 3: a margin of 190 basis points over sofa and in five
In margin of 190 basis points over sofa.
And a five and a half year term.
Speaker 3: all of which are critical key outcomes for C-way.
All of which are critical key outcome pristine way.
Speaker 3: We drew about $50 million on the resolve of during the quarter, which has been repaid. The final result on a major senior credit facility allowed us to repaid $100 million. We now have.
We drew about $50 million on the revolver during the quarter.
Which has been repaid.
The final result.
All of our major senior credit facility.
Allowed us to repay $100 million.
We now have.
A total undrawn revolving capacity of over $400 million.
And 30 unencumbered ship.
Yeah.
Speaker 4: Our fortress balance sheet highlights the success of a balanced capital allocation strategy over time.
Our fortress balance sheet highlight.
Success of our balanced capital allocation strategy over time.
We have acquired assets.
Speaker 3: These assets are on the book for $2 billion, where the value of the fleet today is nearly $3.3 billion.
These assets on the books.
2 billion, where the value of the fleet today is nearly $3 3 billion.
Speaker 4: Our net loan to value is 19%.
Our net loan to value is 19%.
Speaker 4: Our cash break even for the next 12 months is under $15,000 today.
Our cash breakeven for the next 12 months is under $15000 per day.
Speaker 4: This is an exceptionally low level and it keeps differentiating.
This is an exceptionally low level.
And a key differentiator for international Seaways.
Speaker 4: This includes about $3,700 today of our fixed contract
This includes about $3700 per day of our fixed contracted revenue.
Okay.
Speaker 4: that an aggregate amount to over 344 million dollars.
But in aggregate.
Amounts to over $344 million.
True to charter accurately.
Speaker 4: It exceeds any profit sharing element on applicable time charts.
It excludes any profit sharing element on applicable time charter.
Speaker 4: This low-breaking, even level pays the way for enhanced free cash flows during 2024.
This low breakeven level paves the way for enhance free cash flow during 2024.
Yeah.
Speaker 3: We have exercised two optional LR1 new building times.
We have exercised two optional LR, one new building contracts.
Speaker 4: We now have four LR1 new buildings with the livery schedule beginning in the second half of 2025, through to the first quarter.
We now have four L. R. One new building with deliveries scheduled beginning in the second half of 2025.
Through to the first quarter of 2026.
Speaker 4: These door ships are designed to be scrubber fitted.
These four ships are designed to be scrubber fitted.
Speaker 4: and they are certified as dual fuel ready.
And they are certified and dwarfed you ready.
Speaker 3: The aggregate price is $231 million for the four of us.
The aggregate price is $231 million for the four vessels.
Speaker 3: Upon delivery, these ships would trade in a niche Panemax International Joint Center, which has earned over $54,000 per day on average in the last 12 months.
Upon delivery.
Chip will trade in a niche panamax international joint venture.
Which is earned over $64000 per day on average in the last 12 months.
Turning to slide five.
Speaker 3: We've updated our standard set of bullets on tanker demand drivers with the subtle green up, L next to the bullet represented as positive for
We've updated our standard set of bullets on tanker demand drivers with the subtle green up next to the bullet represented a positive for tankers.
Speaker 3: And the black dash represents a neutral impact and a red downhill means the factor is not positive for tanker demand.
The black dash, representing neutral impact and a red downhill, meaning.
The factor is not positive for tanker demand.
Yeah.
Pulling some highlights.
Yeah.
Speaker 3: oil demand increase in 2023 on average about two million barrels per day.
Oil demand increase in 2023.
On the average about 2 million barrels per day.
Over 2022.
Speaker 4: and is projected to increase another million and a half for a day in 2024. Gadget growth in oil supply.
And is projected to increase another million and they have barrels per day in 2024.
Yeah.
Good job growth and oil supply.
It's about a million and a half barrel per day.
Speaker 4: over the next two years, each of the two years.
Over the next two years.
For two years.
Speaker 4: mostly coming from the West in the United States, Diana and Brazil.
Mostly coming from the west and the United States.
Deanna and Brazil.
A relevant question for the tanker space is when will OPEC decides to serve turn some of the pump back on an increased production.
Speaker 3: for the tanker space is when will OPEC decide to turn some of the pumps back on and increase production. We believe this will bring positive sentiment and lift average time-trigger equivalent. Less 100
We believe this will bring positive sentiment.
And with average time charter equivalent.
On the flip side.
During the duration.
With OPEC keeping production at Bay.
Speaker 4: We are drawing inventories in the fourth quarter based upon present demand level.
We are drawing inventories in the fourth quarter based upon present demand levels.
Speaker 4: which we believe benefits a longer term horizon on
We believe benefits our longer term horizon on tankers.
Speaker 3: As the chart on the lower right shows, current level of commercial inventory are well below their 15 year house.
As the chart on the lower right shows current level of commercial inventories are well below the 15 year high.
Speaker 3: Previously, key events caused big build and draw such as COVID in 2020 and 2021.
Previously he events caused big Bill and draws.
Such as Covid and 2000 22021.
It took us time to draw these inventories down.
Speaker 3: We looked at the five-year average all the way from 210 since it pre-day's event and have included the average of 2019 and 2022 separately as these two periods match better with all the main.
We look at the five year average all the way from Chi Tsang.
Is it crazy events and have included the average of 2019 and 2022 separately.
These two periods match better with all demand.
Speaker 4: The bottom line is that inventory are historically low.
The bottom line is that inventories are historically low.
Speaker 3: especially when combining commercial and strategic reserves. Before moving on from this slide, there are a number of outstanding geopolitical events.
Especially when combining commercial and strategic reserves.
Before moving on from this slide.
There are a number of outstanding geopolitical events.
Better sadly affecting our current tanker environment.
Speaker 3: Over the last few years, over the last few months, the price cap imposed on the Russian oil had been effectively priced out due to rising crude oil costs from OPEC plus production cut.
Over the last few years over the last few months the price cap imposed on the Russian oil had been effectively priced out due to rising crude oil costs from OPEC plus production cuts.
We have seen an impact on the tanker market as many shifts as the greatly migrate into the commercial fleet.
Speaker 4: as many tips to the great degree in the commercial.
And upside over time.
Speaker 3: Is that we see the loosening of sanctions on 800,000 barrels per day of Venezuela and Cuduel?
Is that we see the loosening of sanctions on 800000 barrels per day.
Our Venezuelan crude oil.
Moving to slide six.
The supply side continues to be compelling.
Speaker 3: This component is very strong for change or fundamental.
This component is very strong for tanker fundamentals.
Speaker 3: On the lower left hand chart, we break down the order books by each step of class relative to the total fleet.
On the lower left hand chart, we break down the order book by each vessel class relative to the total fleet.
Speaker 3: more specifically potential candidates and the next few years that will be at the very roots removed from intensive commercial trading.
More specifically potential candidates in the next few years that will be at the very loose removed.
Intensive commercial trading.
Speaker 3: which we've categorized as become somewhat marginalized around 20 years of age or older.
Which we categorize as becomes somewhat marginalized around 20 years of age or older.
Speaker 3: In aligning the duck bars on the grass, that's one order. Do not eat the meat to replace these distinctly.
In Hawaii, the dark bars on the graph vessels on order do not meet the need to replace the existing fleet.
On the lower right hand chart.
Speaker 3: The diminutive replacement of the fleet over the next few years is expected to increase the average fleet age to levels that we have not
These limited replacement of the fleet over the next two years is expected to increase the average fleet age.
Two levels that we have not seen in 30 years.
Speaker 3: 15% of the tanker fleet today is over 18 years and by 2027, we anticipate that figure to double to 30%.
15% of the tanker fleet today is over 18 years.
<unk> 2027, we anticipate that figure to double to 30%.
Speaker 3: And the average age of a fleet, if this were the case, would be about 15 years old.
And the average age of the fleet. If this were the case would be about 15 years old.
Speaker 3: We believe that in order to meet grown demand in the next year years, that shifts over 15 years old, will need to stay in service, beyond the next few years as we transition to a multi-fuel.
We believe that in order to meet growing demand in the next few years that shifts over 15 years old will need to stay in sort of it beyond the next few years as we transition to a multi fuel future.
Speaker 4: The candidate pool for recycling will then be very high.
The candidate pool for recycling.
Then be very high.
Speaker 3: Overall, we expect a great run for tankers over the next few years.
Overall, we expect a great run for tankers over the next few years.
Speaker 4: Recapital and balances of oil should continue to increase the need for tankers as the growth in oil production.
Regional imbalances of oil should continue to increase the need for tankers.
The growth in oil production.
Speaker 4: is coming from the west and largely the growth in all the man is driven by emerging markets in the east.
Coming from the West.
And largely the growth in oil demand is driven by emerging markets.
Okay anyway.
Speaker 3: We will continue to capture the strength of the tanker market today.
We will continue to capture the strength of the tanker market today.
And tomorrow.
Speaker 3: with a balanced tackle allocation approach. We continue to utilize all possible lessons.
With our balanced capital allocation approach, we continue to utilize all possible levers.
Speaker 3: that builds upon our track record of returning to shareholders. New Teenie, a healthy balance sheet.
That builds upon our track record of returning to shareholders.
Maintaining a healthy balance sheet.
Yeah.
Growing the company.
Speaker 3: I'm now going to turn it over to our CFO , Jeff Prebork, to provide our financial review. Jeff?
I'm now going to turn it over to our CFO, Jeff Preboard to provide our financial review Jeff.
Thanks, Louis and good morning, everyone.
Speaker 5: Looking at slide 8 on the upper left.
Looking at slide eight on the upper left net.
Speaker 5: Net income for the second quarter was $98 million or $1.99 for the Looted Chair.
Net income for the second quarter was $98 million or $1.99 per diluted share.
Speaker 5: On the upper right you can see adjusted even down to the third quarter of 2023 was 151 days.
On the upper right you can see adjusted EBITDA for the third quarter of 2023 was 151 thing.
Speaker 5: In the appendix, we've provided a reconciliation from reported to a Justin Erick.
In the appendix, we provided a reconciliation of reported to adjusted earnings.
Speaker 5: While our expense guidance for the third quarter mostly fell within the range of expectations, I'd just like to point out a few items of note within our income statement.
While our expense guidance for the third quarter, mostly fell within the range of expectations I'd, just like to point out a few items of note within our income statement.
Speaker 5: Vessel expenses were a bit higher than expected with the largest variance due to some repairs and maintenance on 1 VLPC and some increased spent for crew training on the new dual fuel VLPC.
Also expenses were a bit higher than expected with the largest variance due to some repairs and maintenance one VLCC and increase spend per crew training and the new dual fuel VLCC.
Speaker 5: G and A, expect this will also hire to increase costs for legal and regulatory matters.
G&A expenses were also higher due to increased costs for legal and regulatory matters.
Speaker 5: On the revenue side, our library business had another strong order earning about $11 million in revenue.
On the revenue side, our lottery business had another strong quarter.
Turning about $11 million in revenue.
Speaker 5: With $2 million in vessel expenses, $3 million in charter hire, and $1 million of GNA, the Larry business contributed about $5 million in Ubitad and Third Quarter, and has contributed $15 million in EBITDA, year to date. Turning to our...
With $2 million in vessel expenses $3 million in charter hire and $1 million of G&A. The lighting business contributed about $5 million of EBITDA in the third quarter and has contributed $15 million EBITDA year to date.
Turning to our cash bridge on slide nine.
Speaker 5: We began the quarter with total liquidity of $493 million. Contosed of 236 million in cash, 257 million in undrawn revolving.
We began the quarter with total liquidity of $493 million composed of $236 million in cash.
$257 million.
Undrawn revolving capacity.
Speaker 5: Following a wilded chart from left and right on the cash bridge, we first add 151 million and adjust the EBITAB in second quarter. Last 54 million in debt service.
Following along the chart from left to right on the cash bridge, we first add 151 million and adjusted EBITDA for the second quarter.
34 million of debt service.
Speaker 5: A post of schedules every payments and cash interest?
Bose of scheduled debt repayments and cash interest expense.
Speaker 5: Let's start dry docking capital expenditures as well. 15 million in a quarter, and working capital benefit is about 22 million. This comprises our definition of free cash well about $104 million for the third quarter.
Our drydock of capital expenditures of about 15 million in the quarter.
Working capital benefit of about $22 million.
Comprises our definition of free cash flow of about $104 million for the third quarter.
Speaker 5: The remaining bars moving to the right have a cash bridge show our capital allocation for the court. In commercial due averaging reflects a net prepayment of $54 million in connection with our executing our new revolving credit facility or RGCM as I'll call it for sure. 104 million was repaid on our 750 million facility, the transfer collateral vessels and $50 million was drawn on the new facility.
The remaining bars moving to the right and the cash bridge, so our capital allocation for the quarter.
Incremental deleveraging reflects a net prepayment of $54 million in connection with executing our new revolving credit facility or our CFS I'll call. It for sure.
$104 million was repaid on our $750 million facility the transfer collateral vessels.
And $50 million withdraw that 98%.
Speaker 5: With $160 million in overall capacity, we also added 110 million in undrawn RCM capacity as shown in the dotted line cash bridge.
With $160 million and overall capacity, we also added $110 million and Undrawn Rcs capacity as shown in the dotted line cash bridge.
Speaker 5: Also in the quarter, we paid $61 million to combine the regular and supplemental dividends. $1.42 for shares.
Also in the quarter, we paid $61 million in combined regular and supplemental dividends.
<unk> 42 per share at September.
Speaker 5: These components then let us stand in the liquidity of over $581 million. And you see on the far right with 214 million cash and short-term investments and 367 million in 100 on evolving the basket. Moving now.
These components that led us to ending liquidity of over $581 million.
As you see on the far right with 250 $214 million in cash and short term investments and $367 million in Undrawn revolver capacity.
Moving now to slide 10.
Speaker 5: We have a strong financial position as detailed by the balance sheet to see on the left hand side of the slide. Here are some key items.
We have a strong financial position as detailed by the balance sheet you can see on the left hand side of this slide.
Here are some key items.
Cash remains strong at $214 million.
Speaker 5: That's all for the books at cost or approximately two billion.
Vessels on the books at cost or approximately $2 billion.
Speaker 5: Well, this is a curve market value of over three minutes.
Relative to the current market values of over three days.
Speaker 5: And with about $855 million gross debt at September 30th.
And with about $855 million gross debt at September 30.
Speaker 5: You can see that we brought net low to value below 20% to just about 19%. Also illustrated in the bottom right hand chart of the page.
You can see that we brought net loan to value below 20% suggests about 19%.
Also illustrated in the bottom right hand chart of the page.
Speaker 5: And the upper right hand table are pro forma debt balances as of November 1 reflect our recent debt repayment of $71 million comprised of $21 million of the 750 million dollar facility and 50 million dollar pay down on the BRCF which also increased our revolver capacity to $417.
In the upper right hand table, our pro forma debt balances as of November.
November one reflect our recent debt repayments of $71 million comprised of $21 million of the $750 million facility and $50 million pay down of the RCM, which also increased our revolver capacity to <unk> 17.
Speaker 5: The new RCF which we executed during the third quarter with oversubscribed even has been increased the size of the overall.
The new Rcs, which we executed during the third quarter was oversubscribed, even adds to increase the size of the overall facility.
Speaker 5: Now, because 85% of our depth work volume is its head start fixed, weighted average all in interest rate using current bank borrowing rates is about 6%, which is effectively a margin of just 50 basis points about today's benchmark silver rate.
Now because 85% of our debt portfolio is hedged or fixed.
Weighted average all in interest rate using current bank borrowing base of about 6%, which.
Which is effectively a margin was up just 50 basis points above todays benchmark sulfur rates.
Okay.
Speaker 5: As we mentioned in our press release this morning, we expect to continue on this trajectory of the balanced capital allocation approach.
As we mentioned in our press release. This morning, we expect to continue on this trajectory of balanced of a balanced capital allocation approach.
Speaker 5: We've already repaid $770 million of debt in this quarter. We've also announced our combined dividend of $1.25 per share, consisting of a regular dividend of $12 per share and a $1.13 cents of percent amount of dividend, which represents approximately 60% of net income in Q3.
We have already repaid $770 million of debt in this quarter. We've also announced our combined dividend of $1 25 per share consisting of our regular dividend of <unk> 12 per share and a $1 13.
<unk> dividend.
Which represents approximately 60% of net income in Q3.
Speaker 5: These payments will be made in support quarter as the continued adult track record that's about excluding our capital allocation strategy.
These statements we've made in the fourth quarter as we continue to build our track record of executing our capital allocation strategy.
Lois mentioned earlier.
Speaker 5: Including this combined dividend or total dividend yield, the child of 2023 would be approximately 16% based on average market cap here today.
Excluding this combined dividend total dividend yield calendar for 2023 would be approximately 16% based on average market cap year to date.
Speaker 5: On the last slide that I'll cover slide 11 reflects our board looking guidance and booked to date.
On the last slide that I'll cover slide 11 reflects our forward looking guidance and booked to date.
Speaker 5: time slider equivalent or TCE, align with our cash breakeven.
Time charter equivalent or TCE aligns with our cash breakeven levels.
Speaker 5: Starting with TC pictures for the fourth quarter of 2023, which I'll remind you as I always do, that the actual TC on our next earnings call may be different than what you're seeing here. But we have a blended average of about $34,000 a day, so far this quarter, the GJLs provide that we have to run.
Starting with TCE pictures for the fourth quarter of 2023, which I'll remind you as I always do that the actual TCE on our next earnings call maybe different than what Youre seeing here.
But we have a blended average of about $34000 a day so far this quarter with the details provided on the upper left.
Speaker 5: On the right side of the slide, you can see our cash break evens, which you displayed for the next 12 months reflective of the delivery of the last vessel and currently building program of the dual field field disease and related payments on festival images as well as the new Dix rep, before any profit share on our increased long-term time show.
On the right side of the slide you can see our cash breakeven, which is displayed for the next 12 months reflective of the delivery of the last vessel.
Our new building program with dual fuel with Vlccs and related payments principal and interest as well as the new fixed revenues before any profit share on our increased long term time charters.
Speaker 5: Overall, we reduced our breakeven by $3,700 per day. Let me just say that again. Loaded them by $3,000 a day from the 30th quarter of last year.
Overall, we've reduced our breakeven by $3700 per day, let me just say that again lowered them by $3000 a day for the third quarter of last year.
Speaker 5: When you compare this to the break even to our pictures of Dave, compared this break even to our pictures of Chiefs of Dave in the quarter, certainly looks like international seaweights that generate substantial cash flows during the fourth quarter again.
When you compare this to the breakeven fixtures to date compared with breakeven to our fixtures achieved to date in the quarter certainly it looks like international Seaways to generate substantial cash flows during the fourth quarter again.
Speaker 5: On the bottom left hand chart for the modelers out there, we provided some updated guidance for expenses in the fourth quarter in our estimates for 2024.
On the bottom left hand chart for the Modelers out there we provided some updated guidance for expenses in the fourth quarter and our estimates for 2024.
Speaker 5: We also include in the appendix our quarterly expected off-wire and cat X schedule for 2023 and 24. I don't tend to read each item line by line, but encourage you to use these shabamly twins.
We also included in the appendix, our quarterly expected off hire and Capex schedule for 2023, and 24 I don't tend to each item.
Bottom line by line, but encourage you to use these for modeling purposes.
Speaker 5: That concludes my remarks, so I'd like to turn the call back to Lois for your closing comments. Lois
That concludes my remarks, I'd now like to turn the call back to Lois for closing comments Lois.
Alright, thanks, so much Jeff.
Speaker 3: On slide 13, we provide you with C-Waze investment highlights, which I-
On slide 13, we provide you would see ways investment highlights.
Which I summarize briefly.
Speaker 3: International C-Way has built a consistent track record of returning to shareholders, maintaining a healthy balance.
International Seaways has built a consistent track record of the team.
Turning to shareholders.
Maintaining a healthy balance sheet.
All the while growing our company.
Speaker 3: Our toll shareholder return over this time is approaching 300%.
Our total shareholder return over this time is approaching 300%.
Surpassing many tiers.
Speaker 3: Over the last 12 months through regular quarterly dividends, supplemental dividends, and opportunistic share
Over the last 12 months through regularly quarterly dividend supplemental dividends and opportunistic share repurchases.
Speaker 3: We've returned $316 million in cash returns on earnings of $658 million representing and nearly 17% yield.
We returned $316 million in cash return on earnings.
658 million, representing a nearly 17% yield.
We've improved our balance sheet over the time.
Speaker 3: with 75 vessels in the crude and product tanker mud.
With 75 vessels in the crude and product tanker markets.
Speaker 3: We have two billion in assets on the books that are worth over $3 billion in the market today.
We have $2 billion in assets on the books that are worth over $3 billion in the market today.
Speaker 3: We've pre-paid $215 million in debt and unencumbered through the ship. Our cash-graced even level is at 15.
We prepaid $215 million in debt and unencumbered 30 ships.
Our cash breakeven level.
Is it $15000 per day.
We are strategically positioned.
Speaker 4: for a sustained robust tanker market with a growing need for seaborn transportation, created by regional and balanced-
For sustained robust tanker market with a growing need for seaborne transportation created by regional imbalances.
Speaker 4: A keyway or high focus is always upon C reliable transportation.
At <unk>, our highest focus is always upon safe reliable transportation.
Speaker 3: and the industry that will only become more transparent with evolving environmental regulations.
And then industry that will only become more transparent with involving environmental regulation.
Speaker 4: We remain focused on being a leader in ESG.
We remain focused on being a leader in ESG.
Speaker 3: I want to thank everyone for joining us. And with that, operator would like to open up the lines for questions.
I want to thank everyone for joining us and with that operator, we'd like to open up the lines for questions.
Speaker 1: Thank you, Lois. If you would like to ask a question, please press star solid by one on your telephone keypad. If for any reason you'd like to withdraw your question, please press star solid by two. And as a reminder, if you are using a speaker phone, please remember to pick up your hands there before asking your question. So our first question comes from the line of Ben Nolan of Styphalm. Your line is now open, please go ahead.
Thank you. Louis if you would like to ask a question. Please press star followed by one on your telephone keypad if for any reason you'd like to withdraw. Your question. Please press star followed by T and as a reminder, if you want use the speakerphone. Please remember to pick up your handset before asking your question. So our first question comes from the line.
Ben Nolan of Stifel. Your line is now open. Please go ahead.
Speaker 2: Great, thank you. So, you know, really good quarter. I have just a couple questions. First, just as I'm thinking about the fourth quarter, once again, things like the LR1s look really good. However, the VLCC rights book to date were a little bit lower than what I was thinking, and I appreciate that.
Great. Thank you.
So.
Really good quarter.
I have just a couple of questions.
First just as I'm thinking about the fourth quarter.
Once again things like yellow ones looked really good.
However, the VLCC rates book to date, we're a little bit lower than what I was thinking and I appreciate that.
Speaker 6: that several of them have time-tracking contracts on them, but can you maybe just talk through sort of how the dynamics for the V's and the fourth quarter that's formed?
Several of them have time charter contracts on them, but.
Can you maybe just talk through sort of how the dynamics for <unk> in the fourth quarter, thus far.
Speaker 3: Well, I guess I'd say then that, you know, Rachel definitely picked up. And the team at Tancers in the match, though, is booking quite strong numbers, you know, for the remaining open days in a quarter. So overall, we're pretty happy with what it looks like to be on the beat.
Well I guess I would say Ben that rates have definitely picked up and the team at cankers into Nashville is booking quite strong numbers for the <unk>.
Gaining open days in the fourth quarter. So overall, we're pretty happy with what it looks like there are maybe.
Speaker 5: Okay. So just timing kind of the thing. Yeah. Hey, hey, hey, hey, hey, the other thing is take a look. Our guidance is a look at the percentage. It's actually pretty low percentage of the fourth quarter, which is, every company's going to be a little different, but based on accounting, an ethical voice. It's their experiencing, but there's a lot of quarter left on, based on what we reported.
Okay. So just timing kind of a thing.
Yeah, Hey, Dan the other thing is say look our guidance is.
Well look at the percentage.
A pretty low percentage of the fourth quarter, which as you know every company is going to be a little different but based on accounting in that particular voyages.
Currency, but.
There's a lot of quarter lepton based on what we reported.
Speaker 6: Sure. Yeah. Yeah, I appreciate that. And then I was going to ask the MRs in particular did really well, which, you know, it is...
Sure.
I appreciate that.
And.
Then I was going to ask.
<unk> in particular did really well, which.
Speaker 6: Maybe a little surprising to me given that the average age is in solidly in the teens at this point. I know you kind of continue to thin out that fleet a little bit, ones and twos here. But it sounds like most of those assets are unencumbered. The older ones are unencumbered at this point. It seems like you're still doing really well with them. And I know there's always a preference to have a little bit newer assets. But you know, I mean, given the strength of the market here, how do you think about where you think the average youthful life within?
Maybe a little surprising to me given the average age is in <unk>.
Solidly in the teens at this point.
I know you kind of continue to thin out.
That fleet, a little bit ones and twos here.
But it sounds like most of those assets are unencumbered at the older ones are unencumbered at this point.
Seems like you are still doing really well with them.
And I know, there's always a preference to have a little bit newer assets, but.
I mean, given the strength of the market here.
How do you think about where using the average useful life within international Seaways of those assets or I mean could you do you think it's <unk>.
Speaker 6: international seeways of those assets are I mean could you do you think it's
Speaker 6: possible to sweat them out to 20 years or even longer or is that just not part of the DNA for you guys?
Possible to sweat them out to 20 years or even longer or is that just not.
Part of the.
DNA for you guys.
Speaker 3: Actually, you know, we totally do think that that
Actually we totally do.
That's.
Speaker 3: you know, part of our strategic plan there. And if you really look at, you know, the product part of our fleet, and you think about what the man has been and how it has increased on the product at a higher.
Part of our strategic plan, there and if you really looked at.
Part of our tweaks and you think about what demand has been and how it has increased on the products that are higher.
Speaker 3: ton of demand level, then it has the crew, then it seems the crew to catch up, but the products are just really earning. So we feel like...
Ton mile demand level than it has on the crude and I think the crude a catch up but the products are just really earnings. So we feel like the MLR just a complete strength for us.
Speaker 3: MRs are just a complete strength for us. And we certainly see that they are trading very competitively in the market. We've maintained them very well and they have really strong potential.
And.
We certainly see that they are trading very competitively in the market, we've maintained them very well and they have.
Really strong potential.
Speaker 6: Okay. And then last for me, and I know it's just something that you don't like to and probably can't talk to, but with respect to the strategic investor kind of, you know, issues that have been going on over the last, I don't know, year and a half or so. Just curious if there's any incremental dialogue or if things are relatively quiet on that.
Okay.
And then last for me and I know, it's just something that you don't like to and probably can't talk to you, but with respect to the.
The strategic Investor kind of.
Issues that have been going on over the last I don't know year and a half or so.
Just curious if there is any incremental dialogue or if things are relatively quiet on that front.
Speaker 4: You know, I guess what I would say is that, you know, we've been running and will continue to run international see-way, you know, for all of our shareholders, all of our stakeholders, we've been posting extremely strong performance and, you know,
Yeah, I guess, what I would say is that we've been running and will continue to run the international Seaways for all of our shareholders all of our stakeholders, we've been posting extremely strong performance then.
Speaker 3: very systematically engaging with our shareholders and we feel really good about the terms that we've been able to deliver to all of us.
Barry.
<unk> engaging with our shareholders and.
We feel really good about.
The returns that we've been able to deliver to all of our shareholders.
Speaker 6: Right, well, there's no question about that, so I appreciate it. Thank you. Thank you.
Right well Theres no question about that so.
I appreciate it thank you.
Thank you.
Thank you.
Speaker 1: Next question comes from the line of Hureaf Alma Gorabi of BTI key your line is open please go ahead
Our next question comes from the line of Sherri.
Go Robby of B T. <unk>. Your line is now open. Please go ahead.
Speaker 2: Hey, good morning. Thanks for taking my question. So, good morning. During the quarter you fixed the morning. Good afternoon. During the quarter you fixed the 2008 Bill of MR, then you sold another MR last month. And I think Ben's question touched on this, but looking at the fleet, they're still a handful of similar vessels or more than a handful. So I'm curious, what kind of time-tried are opportunities you're seeing for these? 13 to 15 year old MRs and given where asset prices are, how do you balance that with the chance to recycle that capital else?
Hey, good morning, Thanks for taking my question.
So good morning during the quarter you fixed good morning, good afternoon.
What are your fixed in 2008 built EMR then you sold another EMR last month and I think Ben question touched on this but looking at the fleet. There are still a handful of similar vessels or more than a handful. So I'm curious what kind of time charter opportunities you're seeing for these.
13 to 15 year old Mr's, and given where asset prices are how do you balance that with the chance to recycle that capital elsewhere.
Okay.
Speaker 3: Well, I'll flip it to Derek, our key commercial officer in a second. And I'll just say that, you know, again, I mean, we're really feeling this strength in this MR fleet that we, you know, are lucky enough to have at international C-way and we've been executing time charters. We very carefully prune when we think it's opportunistic. And we have a very strong base to operate from. And then Derek, do you want to chime in with any additional comments?
Well I'll I'll flip it to Derek <unk>, our chief commercial officer in a second and I'll, just say that again I mean, we're really feeling it shrinks in the MLR.
Read that.
Lucky enough to have at international Seaways, and we've been executing time charters.
Carefully prune, where we think its opportunistic and we have a very strong base.
To operate problem, then Derek do you want to chime in with any additional comments there.
Speaker 7: Sure, thanks, Lois. Sure, thanks for the question. I think you've kind of teed it up for us on the answer. We're going to continue our prudent asset allocation, especially in the MR sector.
Sure. Thanks, Louis curious thanks for the question.
I think you've kind of teed it up for us on the answer you know, we're going to continue our prudent asset allocation, especially in the EMR sector. So.
Speaker 7: because the rates have been so good on the MR side, we see increasing opportunities for charters. What we're looking for is multi-year charters for some of the shifts around the 2008, 2009 vintage. And like you said for us, we...
Because the rates have been so good on the EMR side, we see increasing opportunities for charters.
What we're looking towards multiyear charters for some of the shifts around the 2008 2009 vintage and like you said for us we.
Yes.
Speaker 7: prudently sort of prune the fleet in terms of selling them slowly, but To your question and depends question we want to keep the exposure in that MR side because the rates have been so good for us and for our share
Prudently prune the fleet in terms of selling them slowly but.
To your question. It depends question, we want to keep the exposure in that <unk> side, because the rates have been so good for us and for our shareholders.
Speaker 2: All right, thank you. And then turning to the LNG new bills, the LR1, will those be able to run on LNG as soon as they hit the water or is there some additional capex required to get them running on LNG? And then more broadly, just in terms of bunkering, how extensive these security reports, fueling, LNG fueling capability to be by 20.
Alright, Thank you and then.
Turning to the <unk>.
LNG Newbuild CLR, one will those be able to run on LNG as soon as they hit the water or is there some additional capex required to get them running on LNG and then more broadly just in terms of Bunkering, how extensive do you expect imports.
Fueling LNG fueling capability to be by 2026.
Speaker 8: LR1 for example can call a more diverse set of ports than say BL.
<unk> for example can call a more diverse set of ports than say a VLCC.
Speaker 3: So I guess I would start with, you know, we have that seaways already on the water, three fully dual fuel.
So I guess I would start with.
We have that fee rates already on the water three fully dual fuel.
Speaker 4: LNG vessels, you know, the LPCs that are using LNG on a common basis and it is definitely for sure that they have a lower need for multiple bunkering ports and that is going very well for us. The three LR1s are certified for
LNG vessel <unk>.
So things that are using LNG.
On a common basis than it is definitely for sure that that they have.
Lower need for multiple Bunkering ports and that is going very well for us.
The three LR ones are certified for.
Speaker 3: classified for dual fuel to the ability to turn them to being fully capable for LG and we constantly that in our future. Bill, our chief technical officer, Bill, why don't you jump in a little bit and just share a little bit more.
Classified board.
Fuel to the ability to turn them to being fully capable for LNG and we contemplated that in our future Bill Our Chief Technical Officer, Bill why don't you jump in a little bit and just share.
A little bit more on that.
Speaker 9: Sure, Lowe, thanks. Yeah, those four LR ones will not be able to run an LNG from day one, but we'll require a capex down the road. As we see, the fuel markets, the regulatory standards, the customer expectations all evolve over the next five plus years or so.
Sure. Thanks.
Yes, those four LR ones.
We will not be able to run on LNG from day, one but will require capex down.
Down the road as we see the fuel market the regulatory standards the customer expectations all evolve over the next five plus years or so.
Okay. That's helpful. I appreciate you guys taking my questions.
Hum.
Thank you.
Speaker 1: Our next question comes from the line of Christopher Robertson of Deutsche Bank. Your line is now open, please go ahead.
Our next question comes from the line of Christopher Robertson of Deutsche Bank. Your line is now open. Please go ahead.
Speaker 10: All right, thank you, operator. Good morning, Lois and Jeff. Thanks for taking my questions today. Just turning to the current demand landscape, we've of course seen a continued ton mile demand expansion related to the dislocation of the Russian trade. But wondering if you could touch on anything else, maybe less known in the market that's impacting effective supply, including any congestion issues, bottle necking, I guess in other words, are there any short lived or temporary factors impacting rates currently that could unwind in the next few months?
Alright. Thank you operator, good morning, Louis and Jeff Thanks for taking my questions today.
Just turning to the current demand landscape. We of course see the continued ton mile demand expansion related to the dislocation of the Russian trade.
But wondering if you could touch on anything else, maybe less known in the market, that's impacting effective supply, including any congestion issues bottlenecking.
In other words are there any short lived or temporary factors impacting rates currently that could unwind in the next few months.
Well it's interesting.
Speaker 11: Short-term factors.
Short term factors I don't know how short term we're definitely seeing.
Speaker 4: on the how short-term, you know, was definitely seeing an impact with the reduced draft at the Panama Canal, and that's a true bottleneck out there in the market. I do think that will persist for a few months here, and you know, it does impact the take-for-trades because...
And the impact with the reduced draft at the Panama Canal.
True bottleneck out there in the market.
I do think that will persist for a few months here.
You know it does impact the tanker trade because.
Speaker 4: You know, you're getting a lot of congestion there and that does drive a little bit of a longer time-mile situation.
Youre getting a lot of congestion there and that that does drive a little bit of a longer ton mile situation.
Speaker 4: I would say that's something of a temporary factor. I mean, definitely Q4 from everything that we see inventories are drying. And this is a really strong, dimly unscrupulous, which we appreciate on the tanker side.
I would say that's something of a temporary factor I mean definitely in Q4 from everything that we see inventories are drawing and this is a really strong demand signal, which we appreciate on the tanker side.
Speaker 10: Yeah, definitely, that makes sense. Turning to a little bit more ethosarric question here on the balance sheet, Jeff, could you talk about the 75 million of short-term investments that sit there in terms of what those are, the duration, kind of how liquid are those investments and when they might be converted to cash?
Yes, definitely that makes sense.
Turning to a little bit more esoteric question here on the balance sheet, Jeff could you talk about the $75 million of short term investments.
Sit there in terms of what those are the duration kind of how liquid are those investments and when they might be converted to cash.
Okay.
Speaker 5: Yeah, Hey, Chris, it's just our cat. This our cat.
Yeah, Hey, Chris It's Jeff.
Okay.
Mr. Eric cash management.
Speaker 5: What we've been doing is instead of just overnight money market bonds, which are...
What we've been doing is instead of just overnight.
Overnight money market funds, which are.
Speaker 5: feeling quite well, but we blired out some of the investments into time deposits with typically our facility banks, you know, our relationship banks.
Really quite well.
Later, it out some of the investments into.
Time deposits with typically are.
Facility bags.
<unk> Bank and <unk>.
Speaker 5: per gap if you go out a little bit, it's just doesn't get to be listed as cash. It comes out of the short-term investment, but it's a CD, you know, so our long-term gets it six months. So it looks and quacks a lot like cash, but it's listed as a short-term investment. So I think that's what we see as cash. That's just what you want.
Sure gas if you go out a little bit.
Does it get to be listed as cash comes out of the short term investment, but it's the CD. So.
Our longest in six months so.
It looks and classical highlight cash.
But is listed as a short term investment so.
Okay can we see it as cashes.
Speaker 10: Yeah, go ahead. Definitely. Yeah, just just wondering if I, I guess, is that the continued strategy to kind of ladder those over time? While the interest rates are attractive.
Yes go ahead definitely yes, just just wondering if I guess is that the continued strategy to kind of ladder those over time.
While the interest rates are attractive.
Speaker 5: Well, sure. I mean, I think you've heard well, if you subscribe, we have a balance of cash and revolver. We think that's a good mix for...
Well sure I mean I think.
You've heard well as described we had a balance of cash and revolver, we think thats a good a good mix.
Speaker 5: security to that and natural reality. Okay.
Security and Optionality, but.
Speaker 5: It's nice getting above 5% on a market bonds, and then when you extend that, we'll see these words lately, moving out of another 50 basis points or if they're about. So we actually have a lot of our cash is earning more than the substantial part of the debt that we have if you're fixed or swaps. So that's kind of a nice situation to begin. So we're certain happy with that.
It's nice getting.
Above 5%.
And our money market funds and then when you stand out a little bit on the Cds.
Moving at 50 basis points or thereabouts, so we actually have a lot of our cash.
Cash is already more than substantial part of the debt that we have this year fixture or swaps. So.
That's kind of a.
This situation to be yet so we're sort of happy with that.
Speaker 5: That extra interesting combo making these days and the tragedy department's working part of that and
Extra interest income were making these days.
The treasury departments working hard on that.
Speaker 5: and it keeps what the bass is like we do the shifts, you know.
And Keith.
Keith Sweat those assets like we do the ships.
Speaker 10: Yeah, make sense. Last question for me is just turning back to the four LR1. Could you talk a bit about the cadence related to the installment payments for those four vessels?
Yes. It makes sense last question for me just turning back to the four hour ones could you talk a bit about the cadence related to the installment payments for those four vessels.
Speaker 4: Yeah, I'll take that just to start that and, you know, what I would say is that...
Yeah, I'll take that just to start SaaS and.
<unk>.
What I would say is that the.
Speaker 4: installment payments are attractively weighted to the backside of the best construction cycle and there's towards their delivery. I don't know if you want to see anything more than that.
Installment payments are attractively weighted to the back side.
<unk>.
The vessel.
Construction cycle emerged towards delivery.
I don't know if you want to say anything more than that Jeff.
Speaker 5: You know, maybe we'll find a mixture. We can, they have an FD, say, way to explain that, but it's very typical backhand loaded, where it's not too much upfront, I'd say. We probably only have the first two or required deposits, maybe, in the common border. So for near-charge modeling, I think it's...
Maybe we'll find to make sure we could.
They have an FTE as a way to explain that but its very typical back end loaded.
It's not too much upfront I'd say, we probably only have the first two of acquired deposits maybe that.
In the coming quarter, so for <unk>.
Near term modeling I think it's that go with that.
Speaker 5: that goes that and then we'll the rest of the back end loaders and we'll see if that we can with Coppantiali we'll get more information on it but it's pretty typical
And then the <unk>.
Rest of the backend loaded.
The extent, we can with confidentiality, we'll get more information, but it's pretty typical.
Speaker 10: New build scheduled, but of the back end loaded variety. All right, appreciate it. Thank you.
Sure.
Newbuild schedule, but of the backend loaded variety.
Got it alright appreciate it thank you.
Thank you.
Thank you thanks, guys. Thanks.
Speaker 1: As a reminder, if you'd like to ask a question, please press star followed by one on your telephone keypad. I would now like to open a line for Omar Knutler of Jeffries. The line is open. Please go ahead.
As a reminder, if you'd like to ask a question. Please press star followed by one of your telephone keypad I would now like to open the line.
<unk> of Jefferies. Your line is now open. Please go ahead.
Speaker 12: Thank you, Hi Lois and Jeff. And there, I did wanna, it had a couple questions, but then maybe just perhaps just a quick follow up to the last one from Chris about the LR1s. I did notice at least the way it reads on the balance sheet that perhaps there wasn't a deposit made on those two initial LR1s or order of last quarter. Is that right or were those sort of accounted for differently?
Thank you, Hi, Lois and Jeff.
And Derrick.
Didn't want to.
I had a couple of questions, but then maybe just perhaps just a quick follow up to the last one from Chris about the.
About the LR ones I didn't notice.
At least the way it reads on the balance sheet that perhaps there wasn't a deposit made on those two initial LR ones that were ordered last quarter.
Is that right or were those sort of accounted for differently.
Speaker 3: No, no, your correcto, Martin, so a very clever pick-up there. You know, we have received the Reef Arm Guarantees and those are so we have raised. And of course, that is the time at which you know, you make your down payment. So that would be made in the fourth quarter.
No no.
Omar.
Clever pick up there.
Haven't seen the refund guarantees and those are fully in place and of course that is the time at which.
Mr down payments, so that would be made in the fourth quarter.
Okay got it thanks, Thanks Louis.
Speaker 12: And then just sort of maybe talking about the capital returns, you've obviously generated a good amount of cash flow consistently now for the past several quarters, even paying out supplemental dividends and Jeff in your comments. You talked about how the ratio is basically 60% of quarterly earnings that looks to be a bit higher than the FF4D to maybe 50 in the past few quarters.
And then Joe.
Just sort of maybe talking about the capital returns, you've obviously generated a good amount of cash flow consistently now for the past several quarters, you've been paying out supplemental dividends and Jeff in your comments you talked about how the ratios basically 60% of quarterly earnings that looks to be a bit higher than the 340 to 50.
In the past few quarters.
Speaker 12: I know obviously it's a board decision, but just in general, as we can think about future payouts, you know, obviously subject to strong numbers coming from international z-ways, but in general, is 60% like a new threshold we should think about when we consider what the potential supplemental dividends will be like in strong upcoming quarters. Let's go ahead, yeah.
I know obviously, it's a board decision, but just in general as we kind of think about future payouts.
Obviously subject to strong numbers coming from from international Seaways, but in general is 60% like a new threshold, we should think about when we when we consider what the potential supplemental business will be like and strong upcoming quarters.
Please go ahead Sir.
Thanks Ross.
Hi, Omar.
Speaker 5: Yeah, I would just review our history, to answer your question, review our history. We, over the last four quarters.
Yeah, I would just review.
Our history with to answer your question our view of history.
Over the last four quarters.
Speaker 5: really wanted to balance incrementally view averaging versus at least scheduled memorization on the one hand to lower a cost of lower a break even and give out a good.
Really wanted to balance.
Incrementally deleveraging versus.
The scheduled amortization on the one hand to lower our costs and lower our breakeven and give a good.
Speaker 5: dividend yield, and typically is examined or analyzed or...
The dividend yield.
And it typically is examined our analyzer.
Speaker 5: as you have I believe, but, I'll ratio, but, you know, as far as...
As you have by way of but.
Payout ratio, but at its lowest.
Speaker 5: And I both went out of remarks and it's added up to $6.29 cents pro-plum, but the last dividend for the calendar year. So it's been a good yield. But also to answer your question.
Both by on our remarks, it's added up to.
$6 29 pro.
Pro forma for the last dividend for the calendar year. So it's been a good yield.
But also to towards answering your question with the debt Paydown that we.
Speaker 5: With the debt pay downs that we described from the last quarter's new facility and the payments are already in queue for.
Described.
On the last quarter's new facility entertainment already in Q4.
Speaker 5: And kind of where we are with a lot of really what I call high quality debt that's at rates that are either fixed or swapped at lower than
And kind of where we are with a lot of it's really what I call high quality debt. That's at rates that are either fixed or swapped.
Lower than we are earning on our.
Speaker 5: or interest on our cash. It makes sense that we're sort of...
Interest on our cash.
It makes sense that we're sort of.
Speaker 5: able to pay a little more in terms of payout ratio, discord.
Able to pay a little more in terms of a payout ratio.
This quarter.
Speaker 5: And I think that that's kind of a situation or the healthy situation that will remain in. We've got a good amortization, being a good healthy amount of amortization still there in our schedule in our debt. So it'll be naturally reducing quite a bit during the course of 2024. So maybe, the tank of market continues in the good place that it is. I think you should expect.
And I think that that's kind of situation or a healthy situation that will remain and we've got a good amortization.
Any good healthy amount of amortization still there in our scheduled in our debt. So it will be naturally reducing quite a bit during the course of 2024. So.
Mark the tanker market continues and the good.
That it is I think you should expect did.
Speaker 5: They then pay out to continue like we are doing them now.
Dividend payouts to continue.
Like like we do in the map.
I hope that's responsive.
Speaker 2: Yeah, that's very good. I was actually surprised we were willing to actually answer the question. Come on, oh, aren't you know what?
Yes, that's very good I was actually surprised youre willing to actually answer.
The question.
Good morning.
Speaker 12: Yeah, yeah, no, no, that was very good, very good and constructive. I mean, clearly the balance sheet has been much stronger shape, and it just seems to continue to go in that direction. You know, maybe just one kind of final one, just regarding the new building, you have the four LR ones now.
Yeah, Yeah, no no that was very good very good and constructive I mean, clearly the balance sheet has been much stronger shape than it is.
It seems to continue to go in that direction.
Maybe just one final one just regarding the new building.
LR ones now.
Speaker 12: You know, you have the niche trade in South America where those trade or expected to trade.
You have the niche trade in South America, where those trade and are expected to trade.
Speaker 12: You have options for more, is there potential more to add to do to that fleet beyond just the four new buildings or is it that you?
Do you have options for more or is there potential more to add to that fleet beyond just the four new buildings or is this that you think.
Speaker 4: Well, you know Omar, I think what's really important for us was that we felt that, you know, with this really strong...
Well you know Omar I think what's really important for US was that we felt that I E.
That's really strong.
Speaker 4: of cargo and the relationship that we've built over the years, that we want it to have before as our foundational units. And then, you know, we consistently have had, you know, incharters and different ways within the pool to optimize results, and we'll continue to do.
Thanks.
Cargo and relationship that we've built over the years that we wanted to have for our foundational units and then.
We consistently have had in charters in different ways within the pool to optimize results and we'll continue to do that.
Speaker 12: Got it. Well, thank you, Lewis. And thanks, Jeff. I'll turn it over. Thank you.
Got it well thank you Louis and thanks, Jeff I'll turn it over.
Thank you thanks very much.
Okay.
Speaker 13: Thank you. Our final question comes from the line of Liam Burke of B Riley. Your line is so open. Please go ahead. Thank you. Good morning, lowest. Jeff.
Thank you. Our final question comes from the line of Liam back off of B. Riley. Your line is now open. Please go ahead.
Thank you and good morning, Lois Jeff.
How are you doing.
Speaker 13: Good, thank you, Lose. For the fourth quarter, your partial fixtures on the Suez Max are on a daily rate basis or out distance things that VLCCs. You mentioned earlier that the VLCCs have moved up on off of those partial fixtures, but are you seeing the same move with the Suez Max's? And are they continuing to out distances? The...
Okay. Good thank you Louis.
For the fourth quarter Youre partial fixtures on the suezmax or on a daily.
Rate basis are up just in things that Vlccs, you mentioned earlier that the vlccs have.
Moved up.
Those partial fixtures, but are you seeing the same move with the Suezmax is and are they continuing to add distances.
The VLCC rates.
Speaker 4: Yeah, so you know what I would say is that you know you've seen the whole crew space pick up You know consistent with the last you know 18 months, you know the middle part of the space, you know the Panamack The Panamack is aftermack, so the two is now just you know that are kind of focused on
Yeah. So what I would say is that you know you've seen the whole crude space pick up.
<unk>.
With the last 18 months the middle part of the space you know the Panamax Aframax and Suezmax.
To focus on.
Speaker 3: delivering into Europe , but the shorter hole crews, you know, have really been superstars. And that's something, so we've seen the stores next pick up. They're still very strong. And the whole crew space moved up after, really, the first sickle cow we saw this summer, at times.
Delivering into Europe.
Shorter haul crudes have really been superstars and that continues so we've seen the suezmax pick up there is still very strong.
And the whole crude space moved up after really the first cyclicality we saw this summer.
In a long time.
Speaker 13: Jeff, you highlighted the $3,000 per day per vessel declined and up and cash cost per vessel. How much of that is operating savings and how much of that is financial related in terms of lower principal payments, interest, et cetera.
And Jeff you highlighted the $3000 per day per vessel decline in op in cash cost per vessel, how much of that is operating savings and how much of that is financial related in terms of lower principal payments interest et cetera.
Speaker 5: Hi, then it's mainly the latter. I think we gave guys that we're working hard to keep the senses in good place, but she's meant to turn the lower.
Hi, this is mainly the ladder.
I think we gave guidance that we are working hard to keep expenses play.
Place, but it's but achievements earned returns are lower.
Speaker 5: uh lower
Lower breakeven primarily from.
Speaker 5: reducing interest costs and debt and also reducing the amortization on debt when you load the principal and if it's due the amortization goes down as well and the new will evolve in credit facility.
Reducing interest cost and debt and also reducing amortization on that when you lowered the principle amount that's due to the amortization goes down as well.
The new revolving credit facility.
Speaker 5: skipping forward to that from turn, you know, it's also
More to that term.
Also.
Speaker 5: I noticed that so it's primarily about
Does that so it's primarily the balance sheet.
Speaker 13: But also the time chargers, you know, as you can tell from the chart, it's we were talking about great events on five bests also that included commercial department putting on incremental more time chargers. So it's those two factors. Okay, great. Thank you, lowest 90 Jeff.
But also the time charters as you can tell from the chart.
We were talking about.
Acheive is on spot vessels also benefited from the commercial department, putting an incrementally more time charters. So it's those two factors.
Okay great.
Thank you Louis Thank you Jeff.
Thank you.
Thank you. Thank you.
Speaker 1: As there are no additional questions waiting at this time, I'd like to turn the comments to the call back over to Lewis, the Brocky or closing remarks.
As there are no additional questions waiting at this time I'd like turn the conference call back over to Larry <unk> for closing remarks.
Speaker 3: Thank you, Candace. I just want to thank everyone for joining International Seaway and we're broadcasting here from Bawri through by International Tanker Week where we're seeing customers and we really appreciate your interest in International Seaway and wish everyone to stay well. Thank you very much.
Thank you Candice.
I just want to thank everyone for joining international Seaways and.
We are broadcasting here from Barclays.
By International tanker week, where we're seeing customers and we really appreciate your interest in international Seaways and wish everyone to stay well. Thank you very much.
Speaker 1: Ladies and gentlemen, this concludes today's International Seaway's third quarter, 2023 results talk. Have a great rest of your day. You may now disconnect your lines.
Ladies and gentlemen, this concludes today's international Seaways fourth quarter 2020, Great result.
Rusty Your day you may now disconnect your lines.
Speaker 14: So.
[music].